Tuesday, July 11, 2017

Worst Of The Fifty

Illinois can take some comfort in the fact that they're not alone when it comes to fiscal irresponsibility:

Kentucky and Maryland round out the top five fiscally mismanaged states. Illinois, New Jersey and Kentucky have been in the bottom five in recent years and are "consistently doing poorly," said Adam Millsap, a Mercatus researcher. "There's probably a case to be made that those three are in the worst shape."

On the other end of the spectrum, five red states can claim to be the best managed: Florida, the Dakotas, Utah and Wyoming.

The Mercatus Center's ranking takes into account not just states' ability to pay short-term bills and their ability to make long-run spending commitments, but also states' underfunded pensions and healthcare plans, a major problem facing many parts of the country. The ranking also considers whether the state would be able to provide new services if they are needed or if it's already overtaxed and financially stretched.